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“Steady as she goes_” - City Residential

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					                “Steady as she goes!”

         LIVERPOOL RESIDENTIAL UPDATE
                          QUARTER 2
                            2012




In association with Paver Smith the Northwest’s leading PR Agency
                The ALBANY
           Old Hall Street, Liverpool




              LUXURY APARTMENTS
TO LET from £550 per month FOR SALE from £100,000
                   0151 231 6100
          SHOW APARTMENT OPENING SOON
                                  Market Summary

Sales
    Prices down -0.25% on quarter and -3.49% on year.
    Higher level of repossessions continuing from last quarter.
    Owner occupiers continuing to buy in the decent quality developments.
    Slow period during June caused by extended Jubilee holidays.
.
Lettings
    Percentage of international students in city increasing.
    Demand from tenants continues to remain strong and slightly up on last year.
    Slight concern of supply with large increase in number of student pods/rooms.
    Slow period during June caused by extended Jubilee holidays.

Population Analysis
   Population numbers hold steady although increase expected next quarter.

Sales and Completions Analysis
    Completions down to all time low both quarterly and annually.

Student Market
    University of Liverpool improving/expanding their student portfolio.
    Continued strong level of investment in student sector (Mansion Group purchase).

Finance & Mortgage
    Mortgage rates continuing to rise especially variable and short term fixed rates.
    Interest only mortgages under attack from lenders looking to lessen risk.
    Best buy lists dominated by smaller mutual building societies.

Auction Results
   Minimal activity with only two high yielding sales.

Liverpool Development Update
    Successful launch of Courtyard Apartments at The Albany.

Future Schemes
    Unesco threat of losing World Heritage Status over Peel Liverpool Waters scheme.
                                                   Facts and Figures
                                              AVERAGE PRICES
                                   SALES City Centre
                   Apartment                     Size              Average Price             % Change           % Change
                      Type                    (Square ft)                                    3 Months           12 Months
                     1 Bed                       550                   £88,800                -0.22%              -4.52%
                     2 Bed                       625                  £109,100                -0.91%              -4.30%
                  2 Bed 2 Bath                   725                  £122,000                -0.65%              -3.02%
                  2 Bed Duplex                   900                  £143,500                -0.69%              -3.04%
                2 Bed Penthouse                  1200                 £206,000                 0.00%              -7.83%
                    Average                                           £133,880                -0.50%              -4.54%
                                     SALES Docklands
                   Apartment                     Size              Average Price             % Change           % Change
                      Type                    (Square ft)                                    3 Months           12 Months
                     1 Bed                       550                  £105,000                 0.00%              -3.40%
                     2 Bed                       625                  £131,000                 0.00%              -1.87%
                  2 Bed 2 Bath                   725                  £148,700                 0.00%              -1.52%
                  2 Bed Duplex                   900                  £178,000                 0.00%              -1.39%
                2 Bed Penthouse                  1200                 £251,000                 0.00%              -4.02%
                    Average                                           £162,740                 0.00%              -2.44%
              Figures include parking where available

                                   LETTINGS City Centre
                   Apartment                     Size                  Average               % Change           % Change
                      Type                    (Square ft)               Rental               3 Months           12 Months
                     1 Bed                        550                    £557                  0.36%              2.20%
                     2 Bed                        625                    £636                  0.32%              2.42%
                  2 Bed 2 Bath                   725                     £688                  0.15%              1.03%
                  2 Bed Duplex                   900                     £734                  0.14%              1.52%
                2 Bed Penthouse                  1200                   £1,055                 0.00%              0.00%
                    Average                                              £734                  0.19%              1.43%
                                   LETTINGS Docklands
                   Apartment                     Size                  Average               % Change           % Change
                      Type                    (Square ft)               Rental               3 Months           12 Months
                     1 Bed                        550                    £549                  0.00%              0.92%
                     2 Bed                        625                    £612                  0.00%              2.17%
                  2 Bed 2 Bath                   725                     £658                  0.00%              1.54%
                  2 Bed Duplex                   900                     £713                  0.00%              1.13%
                2 Bed Penthouse                  1200                   £1,030                 0.00%              -0.48%
                    Average                                              £712                  0.00%              1.06%
              Figures assume parking where available and furnished to a decent standard
                                             Liverpool City Centre Averages
                    Apartment                 % Change               % Change
                      Type                    3 Months               12 Months
                      Sales                    -0.25%                  -3.49%
                     Lettings                   0.10%                   1.25%
The sales figures are based upon a sample of apartments in the city/docklands and the prices that would be achieved in today’s market
conditions. They are not based on completed sales as the sample size would to be too low and could well result in wild variations in price.
The lettings figures are based upon market evidence. For each location a sample of 5 developments is used ranging from luxury to basic.
                                    Residential Sales
After a sluggish first quarter of 2012 we entered the usual busier second quarter with more
trepidation than expectation! Although the city centre market is less influenced by the
seasonally strong April to June period than the suburbs it is still the best selling period for the
market. As expected the market struggled to make much progress with low levels of activity
and prices barely moving from the previous quarter. Whilst the figures from Halifax (prices up
0.5%) and Nationwide (prices down 1.6%) provide a mixed message our analysis would
suggest somewhere between the two with a small decline in prices of 0.25%.

Interestingly once we were past the Easter period at the start of April the market did pick up
reasonably strongly only to fall back towards the end of May as the traditionally quieter half
term holiday approached. Unfortunately the extension of this holiday period with the Diamond
Jubilee celebrations resulted in many potential purchasers extending their time off from work.
This resulted in a particularly quiet early/mid June period. Thankfully the last two weeks of
June have seen the market recover quite sharply which would indicate there is still some
decent sales interest out there for the right stock at a sensible price.

We reported last quarter on the continuing issues of repossessions in the city having a
dragging effect on prices and particularly in those blocks where there has been a substantial
amount of investor purchase during the “heady” days of 2007/2008. This has continued during
the quarter with some developments experiencing that vicious circle of repossessions
lowering prices and thus forcing more lenders/distressed owners to bring properties to the
market as loan to values deteriorate substantially.

A couple of positives in the market are the continued interest form genuine owner occupiers
who want to live and work in the city. Attracted by the vast improvements we have seen over
the last few years these buyers are choosing those quality developments where there is a low
level of tenant numbers or where they can see some real value for the long term. A great
example of this is The Albany development on Old Hall Street where the scheme has
benefitted greatly from a multi-million pound redevelopment transforming it into some of the
best residential accommodation in the city. Interest levels are strong with buyers reserving
nearly 50% of the available apartments in the first few weeks at the recent release of The
Courtyard Apartments.

Another positive in the market is the increasing interest (albeit from a very low base) in the
city from developers. Slowly but surely developers are starting to look at sites in and around
the city centre with a view to developing residential accommodation. Whilst a substantial
amount of this interest is concentrated on student development at present we are starting to
see interest in more traditional housing and even “build to rent” schemes. As always
availability of land at the right price is holding back some of this interest but at least
developers are looking!

Talking of developers Peel continues to come up against hurdle after hurdle with their exciting
proposals for Liverpool Waters. After the English Heritage issues they now find the proposed
redevelopment being used as an excuse by Unesco to place Liverpool on the danger of losing
World Heritage Status list. Without wishing to be political and with no biased towards any
developer we are firmly in support of Liverpool Waters even if we lose World Heritage Status.

.
                                  Residential Lettings

The lettings market in the 2nd quarter is always the most challenging as May/June sees the
end of the academic year with many students returning home or off on their travels. As noted
over the last few quarters we have seen a dramatic increase in the number of tenants
renewing their AST agreements rather than run the risk of not finding an apartment in the mad
late summer/early autumn rush however this has not totally insulated the market with a
substantial number of move outs during the quarter.

With a few issues (see below) providing potential headwinds for the market the third quarter
of the year is always the busiest but we normally start to see uplift in activity as we head
through June towards July. In a similar fashion to the sales market late May/early June was
reasonably quiet and definitely a little “softer” than last year with regards to activity levels.
Thankfully the last 3 weeks of June have seen a dramatic increase in interest, viewings and
lettings to the extent that we ended the quarter marginally up on the same period twelve
months ago.

In respect of potential issues the majority of these are centered on student demand. Firstly is
the often discussed subject of fees. Initial views from the universities are that the introduction
of the £9000 fees for this year does not appear to be having an adverse effect of the total
number of students we are likely to see in the city come September. Whilst some of the city’s
universities are seeing a slight drop in demand some are seeing an increase resulting in no
real loss to the residential market. In fact overall numbers may have even increased slightly
by the time September arrives.

Our only real concern for the start of this term is the substantial increase in the number of
student pod rooms that have been built over the last 12/18 months. We estimate that around
600 rooms have been added to the supply in the city and no doubt these will be aggressively
marketed by their respective landlords to ensure full occupancy for their first year of
operation. This may have a slight effect on the number of students that look to rent non
purpose built student accommodation but is unlikely to be that noticeable in the overall
general scheme of things.

A strong positive relating to the student sector is the large and ever increasing overseas
student population that is being attracted to Liverpool as their place to study. Whilst all of the
UK appears to be benefiting from this phenomenon Liverpool appears to be one of the most
successful cities outside of London in attracting this type of student. The city appears to be
particularly effective at attracting international Chinese students given its strong Chinese
links. Apart from increased numbers international students are particularly favoured by many
landlords as they very often pay all of their rent up front and are prepared to pay a decent rent
for good quality accommodation. This is a direct opposite compared to some UK based
students who are struggling to afford some of the better properties on offer.

With demand still strong rents are continuing to stay strong. Whilst there have been some
reports of tightening rents around the UK we are yet to see that happen in Liverpool City
Centre. Indeed the landlords of some of the better buildings in the city are able to continue to
nudge up rents if they are becoming vacant at the right time of the year.
                                Population Analysis

City Centre Core: This area is what is considered to be the actual city centre by Liverpool
Vision/Liverpool City Council and is enclosed by the Mersey to the west, Upper Parliament
Street to the south, Grove St/Low Hill to the east and Islington/Leeds St to the North.

                                       CITY CENTRE CORE
                    Number of built PROPERTIES (city centre core)       11,487
                      Number of OWNER OCCUPIED properties                3,876
                           Number of TENANTED properties                 6,071
                            Number of VACANT Properties                  1,040
                                     VACANCY Rate                        13%
                    Number of Properties UNDER CONSTRUCTION               376
                Number STUDENTS (living in non PURPOSE BUILT units)      2,525
                  Number STUDENTS (living in PURPOSE BUILT units)        8,779
                Number of Units let to SERVICED APARTMENT operators       500
                        Total Number of City Centre Residents           26,661



City/Docklands Living: The area detailed above are but also includes areas which we
consider to be part of city living namely south docklands (City Quay, South Ferry Quay etc)
and those developments adjoining the roads named above ( for example The Reach, The
Quarter, The Collegiate, Gloucester Place etc).

                                          ALL AREAS
                         Number of Properties Built (all areas)         13,961
                      Number of OWNER OCCUPIED Properties                5,143
                           Number of TENANTED Properties                 7,030
                            Number of VACANT Properties                  1,288
                                     VACANCY Rate                         9%
                    Number of Properties UNDER CONSTRUCTION               376
               Number of STUDENTS (living in non PURPOSE BUILT units)    3,069
                 Number of STUDENTS (living in PURPOSE BUILT units)     10,866
                Number of Units let to SERVICED APARTMENT operators       500
                        Total Number of City Centre Residents           32,507
                           Sales and Completions Analysis
                                    (Information to 12th April 2012)


This section shows the number of legal completions registered
  with land registry in both the last 3 months and 12 months

                                 Last 3 Months
                        Postcode       No of Completions
                           L1             5 properties
                           L2             0 properties
                           L3             25 properties


                                 Last 12 months
                        Postcode        No of Completions
                           L1              37 properties
                           L2              6 properties
                           L3             213 properties


                                    Last 3 Months
    Postcodes               Completions      Total Stock                               As % of stock
    L1, L2, L3                30 (-19)          11,487                                    0.26%
                              (Compared to last quarter)

                                  Last 12 months
    Postcodes               Completions    Total Stock                                 As % of stock
    L1, L2, L3                 256           11,487                                       2.22%




  The information above is taken from www.nethouseprices.com and whilst is accurately recorded may not
actually represent all of the properties that have been registered during the quarter. The actual figure may be
    higher than that shown as some sales (repossessions etc) are not always shown on Land Registry.
                                       Student Market
                                         Student Numbers
                                        The facts and figures

University and student figures:

                                                Post      Under
            UNIVERSITY/TYPE                     Grad       Grad       Full Time   Part Time    Total
The University of Liverpool                     3,995     16,595       16,340       4,250     20,590
Liverpool John Moores University                4,860     21,000       18,650       7,205     25,855
Liverpool Hope University                       1,830      5,575        5,265       2,135     7,400
The Liverpool Institute for Performing Arts       55        665          665         55         720
            TOTAL STUDENTS                     10,740     43,835       40,920      13,645     54,565

Student bed numbers:

                         Number of Student Beds (Large schemes)
             Student Beds Built                                    11,260
             Core City Centre                                      9,097
             Non Core City Centre                                  2,163
             Under Construction                                    1,397
             Planning Approved                                     1,504
             Proposed/Rumoured/In planning                         1,864
                            TOTALS                              16,025

General Market
Whilst most of the activity in the student development market has been concentrated on
student pods/rooms over the last 12 months we are starting to see the universities having to
consider their place in the market and evaluate their existing accommodation provision
towards the ever changing student requirement in the market.

As we have noted previously the overseas student market continues to grow rapidly and this
has encouraged particularly the University of Liverpool to invest heavily in their own
residential portfolio for the future. Hot on the heels of the under construction Vine Court is the
recent announcement of the redevelopment of land adjacent to the junction of Brownlow
Hill/Crown with more than 1,200 new en-suite bedrooms. The developemnt forms part of a
£600m campus redevelopment which was announced last year. Further to this is a
requirement for more bedrooms for the start of the 2014 acedemic year. A shortlist of student
developers are currently tendering to be selected by the University.

Investment and interset levels in the student sector remians strong from the sale of student
pods/rooms through to the large schemes. This was typified with the purchase of Parkmoor’s
Windsor Court scheme on London Road by The Mansion Group (who are one of the fastest
growing student operators/investment funds in the UK) recently.
                                  DEVELOPMENTS
                                 Under Construction
      Vine Court, Chatham Street/Myrtle Street, Liverpool –University of Liverpool

                                               Liverpool University’s new building on the
                                               corner of Crown St/West Derby St will
                                               accommodate 710 students in one of the most
                                               eco friendly student schemes being built. The
                                               development, costing £45million, will offer all
                                               ensuite rooms in predominately cluster rooms
                                               with a small number of studio and 2 bedroom
                                               rooms. The West block will be offered as
                                               catered (and conference venue in summer)
                                               and the East block as self catered. The
                                               scheme is being built by Ocon Construction
                                               and will be complete for the start of the
                                               2012/2013 academic year.

            Alexandra Terrace, Hatton Garden, L3 – Middle England/Penlake

Situated adjacent to Downing’s Eden Square
development the proposed redevelopment of
the former fire station is now nearly finished in
plenty of time for the coming September 2012
academic year.

The scheme offers a total of 98 ensuite rooms
together with an on site gym, communal
lounges and kitchens, media centre, laundry
facilities and management office. Prices ranged
between £43k to £48k and were sold with the
benefit of a 10% net yield for the first year.

           St Andrews Church, Rodney Street, L1 – Middle England/Penlake

                                               Originally built in 1823 the former Grade 2
                                               listed St Andrews Church on Rodney Street
                                               was a controversial choice for a student
                                               scheme but has helped rescue a site that had
                                               lain empty since 1976 and suffered bad fire
                                               damage in 1984.

                                               The redevelopment comprises a total 100
                                               student rooms, all ensuite, which have been
                                               sold for £48k each and again with the benefit
                                               of a 10% net yield for the first year. The
                                               development will be complete for the start of
                                               the September 2012 academic year.
               Maple House/Arts School, Myrtle Street, L7 – Urban Sleep

                                             The redevelopment of the former LJMU Arts
                                             building on the corner of Myrtle Street also
                                             includes an adjoining new build structure. This
                                             well located building is situated in the heart of
                                             the university district.

                                             Developed and run by upmarket boutique
                                             student operator Urban Sleep the scheme will
                                             offer a total of 228 rooms and will be completed
                                             in time for the start of the 2012 academic year.
                                             All rooms are ensuite with rents starting at £99
                                             per week.


                 Kent Street/Grenville Street South, Liverpool, L3 - Iliad

Planning has now been received for Iliad’s 262
bedroom scheme on the corner of Kent
Street/Grenville Street South. The designs by
Manchester-based Formroom Architects for the
new building also include 36 individual studios
which include their own kitchen.

There will also be on site management facilities,
28 under-croft parking spaces and communal
student facilities such as a common room and
launderette. The scheme will be run by
Cosmopolitan and is expected to be completed
ready for the start of the 2013 academic year.

                     Prescot Street, Liverpool, L7 – Parkmoor Group


                                             After the completion of the Windsor Court
                                             scheme on London Road, Parkmoor are
                                             pushing on with their next scheme a little
                                             further up the road at Prescot Street, nearly
                                             opposite the Royal Liverpool Hospital.

                                             The development will comprise a total of 49
                                             rooms in a 5/6 storey building and will be
                                             completed for the start of the academic year in
                                             September 2012.
                               Recently Completed
         Chatham Lodge, 140 Chatham Street, Liverpool, L7 7BA – Urban Sleep


                                                    Targeting the post graduate market in
                                                    Liverpool this attractive new build scheme is
                                                    located in a particularly convenient position
                                                    opposite Liverpool University on the corner
                                                    of Chatham Street/Myrtle Street.

                                                    The development comprises a total of 50
                                                    ensuite rooms in clusters of 1, 2, 3 and 4
                                                    bedrooms with rates from £99 for a classic
                                                    ensuite (51 week) through to £130 for a
                                                    studio (51 week)


                   Windsor Court, 118/128 London Road, L3 - Parkmoor

Located close to the universities on London
Road this new build scheme from Parkmoor
has delivered over 100 studios and 2 bed
apartments at the upper end of the market. The
development was completed in September
2011.

Rents start from £160 per week which, whilst at
the upper end of the pricing for the city, offers
the choice of a double share arrangement with
single beds available. Broadband, TV licence
and bills are all included.
                                 Proposed/Possible
                 Brownlow Hill/Crown Street – University of Liverpool

                                           The University of Liverpool has submitted plans
                                           to build more than 1,200 new en-suite
                                           bedrooms. The development which is situated
                                           adjacent to the Brownlow Hill/Crown Street
                                           junction forms part of a £600m campus re
                                           development which was announced last year.

                                           Ocon Construction have been chosen and the
                                           preferred partner to deliver this latest phase
                                           which sits on the site of the existing Veterinary
                                           Science Building. The site extends to 1.6
                                           hectares overall.


                     Oldham Street, Liverpool, L1 - Tara House Ltd

The proposals for the former BCP car park on
Oldham Street comprise two hotels (a three star
and a budget hotel) with 270 rooms in total and
113 post graduate student rooms. Designed by
Liverpool architects Falconer Chester Hall, the
development also includes a basement car park
with 247 spaces available on either a long or
short stay basis. There is the possibility of an
increase in the number of student rooms.
Enabling works have started on site with
completion for the scheme anticipated in early
2014.

               The Paper Mill, Henry Street, L3 - Middle England/Penlake

                                          The next development in the Penlake/Middle
                                          England portfolio comprises the conversion of the
                                          former paper mill on Henry Street in Ropewalks
                                          into 99 ensuite student rooms. Located close to
                                          Liverpool One the rooms are being sold at
                                          £48,000 each offering guaranteed first year net
                                          yields of 10%.

                                          The development, like many of Penlake’s
                                          schemes, will offer communal kitchens/lounges,
                                          on site gym and laundry facilities as standard.
                                                                Finance & Mortgage
                                                                        (As at 2nd July 2012)
                                                                         In association with



                                                                           0800 862 0868
Looking back 12 months there is no doubt we have seen the lowest ebb for mortgage rates.
Once again this quarter we saw an increase in rates (particularly for variable and short term
fixed rates) by around 0.3%. Lenders continue to worry about the effect of the euro crises on
their balance sheets but are also “fattening” the margin they are making. Interestingly the best
buy tables below are dominated by the smaller mutual building societies with the exception of
HSBC who seem keen to grow their market share in the variable rate sector for term
mortgages.

 The list of available mortgage offers detailed below is purely intended as a guide and is sourced from Moneyfacts. It is not intended to be a
         “best buy” table or offer advice it simply highlights some of the mortgage deals that were available on the date shown above.


                                                                  Normal Mortgages
                                                               (Buying and remortgaging)
      Type                          Rate                    Period          Fee       Max LTV                                                        Lender
     Variable                      2.99%                      Term           £0          60%                                                         HSBC
     Variable                      3.29%                      Term         £599          80%                                                         HSBC
      Fixed                        3.15%                     2 Year        £999          75%                                                         Leeds
      Fixed                        3.23%                     2 Year        £699          75%                                                      Cumberland BS
      Fixed                        3.25%                     3 Year        £999          75%                                                         Leeds
      Fixed                        3.49%                     3 Year        £599          80%                                                      Monmouthshire
      Fixed                        3.96%                     5 Year         £699         75%                                                      Cumberland BS
      Fixed                        3.99%                     5 Year        £195          85%                                                      Monmouthshire
      Fixed                        4.58%                    10 Year        £999          75%                                                         Leeds


                                                              Buy to Let Mortgages
      Type                          Rate                     Period                        Fee                    Max LTV                            Lender
     Variable                      3.89%                     2 Year                        £999                    60%                             Principality
     Variable                      4.09%                     2 Year                       £1999                    75%                            Nottingham BS
     Variable                      3.88%                      Term                        £1895                    75%                            Bank of China
     Variable                      3.89%                      Term                        £1999                    60%                              Woolwich
      Fixed                        3.99%                     2 Year                       £1999                    65%                              Coventry
      Fixed                        4.09%                     2 Year                       £1995                    70%                            Northern Rock
      Fixed                        4.39%                     3 Year                        £999                    65%                              Leeds BS
      Fixed                        4.89%                     5 Year                       £1495                    70%                               Skipton

                                              Source: Moneyfacts (www.moneyfacts.co.uk)
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to
status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial
adviser before undertaking any borrowing.
                                                                   Auction Results
     Listed below are the auction results for properties (apartments) sold in the quarter in the main city centre postcodes (L1, L2 and L3)
     or close periphery - city centre side of (L5, L6, L7 and L8)

                                                                                                                                               Ant
                  Address                       Auctioneer          Date      GUIDE £       SOLD £      FLOOR    Beds    Baths   Parking     Rental*     Yield
  26, Irwell Chambers, Union St, L3 9UA        Harmen Healy      15/12/2010   £30,000      £30,000        1st     2        1       No         £425      17.00%
6 Flats at View 146, Conway Street L5 3BA          JLL           03/05/2012   £240,000     £260,000       var     2        1       Yes       £3,285     15.16%




                                         View 146                                                           Irwell Chambers

     If you wish to buy properties at this level of pricing City Residential Ltd offer a buying service which will enable you to purchase at levels normally
     only available to seasoned investors and landlords – ring us for more details.
                        Liverpool Development Update
                               UNDER CONSTRUCTION
                  Mann Island, The Strand, L3 – Countryside/Neptune

Completions of the residential apartments are
now well advanced with a good mix of owner
occupiers and tenants taking residence. The
atrium between the two buildings is now
complete as are the majority of the public realm
works and the pre-sold commercial building.

The two blocks have been named Longitude and
Latitude and Countryside have recently
introduced a shared equity scheme which has
lowered the entry price. Interest remains strong
and sales continue to be steady. The 2nd phase
release of apartments is due shortly.

            The Quarter, Sefton Street, L8 – Development in administration.

                                                 This large mixed use scheme is located on
                                                 the edge of the city centre core at the junction
                                                 of Parliament Street/Sefton Street and is an
                                                 important strategic scheme for the city.

                                                 Phase 1 of the scheme was completed but
                                                 with only 28 completions the development fell
                                                 into administration a few months after the
                                                 credit crunch hit. The administrators BDO
                                                 have now placed the entire site on the market
                                                 with Allsop/CBRE at an asking price of £6.65
                                                 million to include the freehold, 82 flats, the
                                                 part built block and the remainder of the site.

                       Kings Waterfront, Kings Dock, L3 – Artisan

The development had originally stalled due to
the credit crunch/poor market. The developer
has now completed the apartments. The
scheme benefits from a good range of 1 & 2
bed apartments and its close proximity to the
Arena and Albert Dock.

The apartments were originally offered to the
rental market with one of the blocks being run
as a serviced apartment operation but the
majority of the apartments are now included in
the serviced element, trading under the name
“The Block”.
                       Moss Street, L6 – Developer in Administration

Located close to the university/hospital this
development was another hit by the credit
crunch when the developer quickly fell into
administration. The scheme is now finished.

Moss Street offered 36 large 2 bed (mostly with
2 bathrooms) and was sold onto the open
market (with prices from £101,950). All of the
apartments are now sold to a mix of owner
occupiers and landlords. Its location close to the
hospital/university also appealed to key workers
and students.


                        Kings Dock Mill, Hurst Street – LAG Prichard

                                               With the hotel element (as a new Hampton by
                                               Hilton) now open the scheme is helping to
                                               breathe life into this regeneration area of Baltic
                                               Triangle and highlighting the convenience of the
                                               location midway between Liverpool One and
                                               Albert Dock/The Arena.

                                               Approximately one third of the scheme has now
                                               been completed to purchasers (predominately
                                               investors) and over 100 either exchanged or let
                                               with the remaining units available for either sale
                                               or let. Planning has now been obtained for the
                                               next phase.

             Hamilton House, Pall Mall, L3 – Development in Administration

Located opposite the proposed new business
district of Liverpool on Pall Mall this recently
completed scheme comprises a total of 129
apartments.

Hamilton House was another scheme
affected by the collapse of the contractor;
and has now fallen into administration. The
apartments sold have been bought by a
mixture of owner occupiers and investors.
The remainder of the apartments are now
being sold (by the administrator) and let onto
the open market.
                                MAJOR SCHEMES
                                   COMPLETED
      Alexandra Tower, Princes Dock, L3 – Millennium Estates (in administration)

                                                  The scheme which was developed by
                                                  Millennium Estates went into administration in
                                                  late 2008. It has subsequently been brought
                                                  back to the lettings market offering a range of
                                                  1 and 2 bed apartments with stunning views
                                                  out across the river and back in towards the
                                                  city centre. The building also offers adjoining
                                                  car parking in a car stacker.

                                                  The scheme has proved extremely successful
                                                  with tenants looking for a quality scheme and a
                                                  good choice of apartments with the building
                                                  now let at close to full occupancy.

                One Park West, Liverpool One – Grosvenor Developments

Having formally opened in 2009 One Park
West, Grosvenor's flagship residential
building is located in a prime location
adjoining Liverpool One, with many of the
apartments affording views across the newly
created park or to the west over the river.

310 out of the 326 apartments in the scheme
have sold or let on and has helped relieve
some of the tight supply in the lettings market
with a range of studio, 1 and 2 bed
apartments available to rent. Demand
remains positive for both lettings and sales.

                       The Albany, Old Hall Street, L3 – Infinity/53N

                                             One of Liverpool’s finest buildings The Albany
                                             originally suffered with the administration of the
                                             developer and a dispute with the contractor. The
                                             new buyer made a substantial investment in the
                                             building and was rewarded by a strong rental
                                             demand with rising rents and minimal voids.

                                             The building continues to attract strong interest
                                             from owner occupiers with buyers snapping up
                                             the limited release of apartments for sale. The
                                             recent launch of the courtyard apartments saw
                                             nearly 50% of those released sold within the first
                                             few weeks. A show apartment and sales office
                                             are due to open in the next few weeks.
                 Hilton Hotel Apartments, Liverpool One – Ability Group

The stunning new Hilton Hotel at
Liverpool One opened its doors in
November 2009 and has already further
enhanced Liverpool’s hotel offering. The
building also boasts 47 apartments
(mixture of 1 and 2 beds) on its upper
floors with panoramic views over the
development towards the city/river.

The scheme was released for let late last
year with asking prices around £700 for a
1 bed apartment and £900 for a 2 bed
apartment and is now nearly full.

West Tower, Brook Street, Liverpool, L3 – West Tower/Maplefield (in Administration)

                                               West Tower is Liverpool’s tallest building and
                                               18th tallest in the UK. It was Beetham’s second
                                               tower in the city. Unfortunately the scheme
                                               became another victim of the property crash
                                               falling into administration in February 2011
                                               after its owners had failed to sell the majority of
                                               the apartments.

                                               After issues with “oversailing rights” were
                                               resolved with Liverpool City Council in late
                                               2011 the development was placed onto the
                                               market with JLL at an asking price of
                                               £12.5million. A sale has been agreed.

                St Paul’s Square, Old Hall Street, L3 – English Cities Fund

This 50 unit scheme is located in the heart of
the new business district of Liverpool; St Paul’s
Square and comprises a mix of 1 and 2 bed
units spread across 10 floors. The development
benefits from having adjoining car parking in
the St Paul’s Square multistory car park.

The scheme which initially struggled to sell was
transformed by the introduction of the Homebuy
Direct scheme resulting in most of the
remaining units being sold. The square has
benefited from some of the empty commercial
units now becoming occupied.
                          STALLED/UNFINISHED SCHEMES
        L1, The Strand – Windsor Development (Liverpool) Ltd in administration

                                            Probably Liverpool’s most high profile “problem
                                            site” owing to its strategic location at the corner of
                                            Baltic Triangle and facing The Strand/Albert Dock.
                                            After the collapse of Windsor Developments
                                            (Liverpool) Ltd the site was marketed without great
                                            success and its future seemed bleak.

                                            Thankfully Liverpool based Neptune announced
                                            plans to redevelop the site into a £45million mixed
                                            use scheme comprising a building of service/rental
                                            apartments, a 4 star hotel and a further
                                            commercial building. Planning was passed in July
                                            2012 and work on the site should start shortly.

         Herculaneum Quay, Riverside Drive – Herculaneum Developments Ltd

The residential tower scheme is located
fronting the river adjacent to Brunswick
Business Park and was to provide over 100
apartments with views across the river and
city. The collapse of the contractor has left the
future of the project and the site in the balance
(and in the hands of the bank).

Knight Frank had agreed a sale but this then
fell through with the site having been placed
into an Allsop auction on October 27th 2011 in
London but then subsequently withdrawn. We
await developments.
                           POTENTIAL/FUTURE SCHEMES
          Stanley Dock, Regent Road, Liverpool, L3 – Harcourt Developments

                                             The announcement that one of Liverpool’s most
                                             famous and well known landmarks will finally be
                                             developed was made in November 2011,
                                             hopefully bringing an end to many years of false
                                             dawns and uncertainty.

                                             Irish based Harcourt Developments (developers
                                             behind Titanic museum in Belfast) are to
                                             undertake a £50milllion redevelopment of the
                                             site (including the famous Tobacco Warehouse)
                                             into apartments, shops, bars, restaurants and a
                                             hotel. The scheme will benefit from a £25million
                                             investment, courtesy of the regional growth fund.

              Queens Dock, Chaloner Street, Liverpool, L3 – Investec/Vinci

Exciting news recently with the announcement
by Investec Bank to develop the Queens Dock
site (adjoining Leo’s Casino) in a JV with Vinci
Construction.

The proposed development will comprises 13
and 15 storey high towers housing a total of
192 apartments in addition to 100 car parking
spaces. The site had previously benefitted
from planning permission for a 22 storey tower
which was never implemented.


               Liverpool Waters, Central Docks, Liverpool – Peel Holdings

                                               Peel Holdings proposed £5billion Liverpool
                                               Waters scheme occupies 150 acres of prime
                                               waterfront to the North of the Three Graces
                                               and promises to transform this redundant area
                                               of docklands into a vibrant mixed use scheme.

                                               After many years of planning, discussions and
                                               changes (to appease English Heritage) the
                                               scheme finally obtained planning permission in
                                               March 2012. Although good news, the scheme
                                               is still potentially threatened by the prospect of
                                               being called in by the government and a public
                                               enquiry. Peel has announced their intention to
                                               “walk away” from the scheme if this happens.
                                           Summary
The second quarter is never the most spectacular time of the year for sales and Q2 2012
proved to be just that. Sales are still hard to come by and transactions are as low as they
have ever been. Repossessions continue to hit the market keeping a lid on any potential price
increases although at least there is an encouraging amount of interest from owner occupiers.
Funding continues to prove difficult to the majority of buyers especially those with limited
deposits.

The lettings market continues to prove very resilient and whilst rents are not moving up much
there is a decent supply/demand equilibrium. There has been concern that a drop in student
numbers may affect the market however initial indications are that 2012 intake is likely to be
strong especially from international students.

So with no major obstacles or potential stimulus in the market at present it really is a case of
“steady as she goes” for the rest of the year and perhaps the foreseeable future?




Alan Bevan
Managing Director
City Residential
JULY 2012
0151 231 6100
07970 498187
alan.bevan@cityresidential.co.uk
www.cityresidential.co.uk

NEXT ISSUE: October 2012

   You can now also download all back copies of our Liverpool City Centre reports from our website
 THE NORTHWEST’S LEADING RESIDENTIAL ASSET MANAGER




Do you or a client(s) have a block of apartments in the Northwest?
Do you need someone to manage the lettings/sales/management process?
Would you like to look at unique funding solutions to extract value from the scheme?
Do you understand the value of the freehold and would you like to maximize its value?
Do you require a bulk/investment sale?

City Residential are one of the leading residential asset management companies in the
Northwest. If you can answer yes to any of the above questions we will almost certainly be
able to provide a better solution to your scheme than you currently have.

ASSET MANAGEMENT
We currently asset manage hundreds of apartments across the Northwest region for
developers, banks, administrators, receivers etc. Whether it be individual lettings,
management, bulk sales, individual sales or financing we will have the solution for your
scheme.

GROUND RENT FREEHOLD DISPOSALS
We are market leaders in the acquisition/disposal of ground rents and freeholds. Acting for
some of the most active funds in the UK we can offer an array of solutions that can maximize
the value of a freehold and release cash to aid a distressed development. We have some
unique models/solutions that can be applied to a residential scheme irrespective to the build
stage.

BULK/FUND SALES
We act for and deal with many of the UK’s leading and most active residential funds. These
funds are genuine buyers and unlike many of the so called “funds” you may have come
across who inevitably fail to perform.
                                  City Residential




City Residential is Liverpool’s award winning, premier residential agent specialising in city
centre and dockland apartments in Liverpool. Operating from Liverpool’s most prominent and
modern showroom we offer the full range of residential services as follows:
           Sales
           Lettings/Management
           Finance/Mortgages
           Furnishings
           Investors Buying Service
           Property Consultancy/Market Research
           Student deals, finance and restructuring
           Bulk Deals & Investment Properties
           Ground Rent/Freehold Investments
           Serviced Apartment deals/leases

For further information contact Alan Bevan on 0151 231 6100 or 07970 498187
alan.bevan@cityresidential.co.uk
www.cityresidential.co.uk

				
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